much for being here. in particular, i thank the representatives of labor. we simply would not be here had it not been for our friends in the building construction trade off that believe in this cause, the lead in this effort and took it upon themselves not just to identify it as an issue, but to actually go out there and knock on doors at the board of supervisors, make a strong case, hold rallies, and make sure that people focus on this legislation. in particular, i want to thank for supervisor -- thank supervisor dufty for showing leadership on this legislation early on that encouraged other if supervisors to do the same period this legislation is a piece of legislation that arguably can directly impact the development of some 2500 housing units, nine different project sites and generate some $894

million in spending, over 4800 jobs, and generate some $22 million of general fund tax revenues without increasing general taxes in this city. that is how significant is legislative pepper potentially can be. i do not want to oversell it, but i do not want to undersell the significance of this, either. without this legislation, one thing we know is that not much would change. with this legislation, with the nine products that have been identified with those thousands of units of already entitled projects, we believe that could be the impetus to defer couldfees, some 80 -- defer thse fees, some 80 percent, the front end to the back end of the project could be the interest to move this forward and create the jobs. i want to thank mike for his

leadership on this and helping organize labor. i will go on, all of you guys. you are all here. thank you for demanding some reforms. thank you for demanding that city hall focus on jobs. thank you for demanding we focus on construction-related jobs. thank you for holding our feet to the fire, and thank you for getting us to this point. michael has just done a masterful job from day one, and he has been in this for a series of other legislative initiatives, including a new proposal that would create a community facility district to finance the infrastructure- related development projects throughout the city. this is the second phase of some of our local development stimulus legislation that we are also going to be formally introducing to the board of

supervisors, and i want to thank again bevan dufty for his leadership and stewardship and support for the same. this proposal as well will create jobs and revenue for the city without the traditional burdens of going out and increasing taxes to hard-working men and women, so we think this is very positive and enlightened legislation. it is part of the narrative of some of our local stimulus legislation that we have been arguing for and fighting for, and i am hopeful that the affordable housing stimulus and the referral fee -- d. searle as he can get the same kind of reception eventually with the amendments we are making -- deferral fee can get the same kind of reception. thank you, again, michael, for your stewardship and all our friends in the construction trades. >> thank you, mr. mayer -- mr.

mayor. i would like to invite up the total sponsor of the legislation. >> people say is tough to build in this town, and i think thanks to the mayor and the construction and building trade, it is going to be a little easier and a process will be a little fairer and more transparent. what really move us at city hall is that the leadership you see behind you and the men and women at work in the building and construction trades for are hurting right now. the city has a responsibility to help people get to work, to put jobs on the table, and to help move the economy of this city forward. the package that is being signed today i think is an incredible move in that regard. i am proud to be cosponsoring the measure today at the board of supervisors that will allow us to establish and belarus and thereby there would be tax- exempt financing available.

again, another step to move it. i just want to say that being here, it is amazing, how i think we have created an whole new ability to live in the city, an amazing way to experience the vitality of downtown, and people say they cannot wait to build a second tower and they are committed to it. again, i want to thank the mayor for his leadership and the men and women of construction trades. they need our help, and i think the city is keeping faith today. thank you. >> thank you, mr. supervisor appeared with that, i would like to invite the secretary- treasurer of the san francisco building and trades. >> thank you. the clubs are in, the rain is threatening, the wind is blowing, it is chilly, and it is a beautiful day because we are a little bit closer to putting folks back to work. let me tell you what that means -- we have been suffering now 25, 35%, to 40% unemployment in

the trades for more than a year. just imagine what that does to human lives, what that does to families. it has gotten to the point where i meet people i knew and dispatch as an iron worker some years ago, good hands, but they have gotten their backpacks on the streets of san francisco. that is where we are. this measure does not sure that ill, but it brings us a step closer to putting those folks back to work. any of these folks behind me -- business agents and business representatives -- can tell you similar stories. they can tell you more than i can because they see these individuals in their calls every day. they see the desperation they have arrived at. a year about the homes lost, the healthcare lost, the families breaking up. that is where we are. that is where we have been for a while now. hopefully, the economy turns around a little bit. the housing crisis comes up just a hair. banks began to lend a little

bit. with this measure in place and hopefully also the affordable housing measure in place, these projects can happen much more quickly and put us back to work. so my thanks to the mayor. my thanks to a supervisor dufty, and my thanks to the board of supervisors for helping us in this regard. >> thank you very much. i would say it would be an impossible task to get through the board of supervisors but for this board of building trades, and they have been a terrific part in our effort. with that, i would like to invite a representative from the developer of rincon tower 2, slated for this make inside right next to its outdoor power no the -- right next to this outdoor patio. >> thank you.

i am a principal at emerald fund, we are san francisco housing developers. we acted as development consultants on 1 rincon. as many of you know, the developers of this tower behind us and hopefully that on over there are working hard to try to figure out a way to get the second tower built. this legislation that mayor newsom is going to sign today will help advance that, will help bring forward the time when the second tower can start and other residential projects can start. currently, development projects do not pencil. what this means is that to get construction started, you either have a pro forma as a project margin -- this project margin needs to be sufficient so that lenders land and equity investors invest. there are three different components. there is revenue -- how much will condos sell for. construction costs, and there is

soft costs, things like impact fees and interest. to get from today's world where there is no new construction to tomorrows where there hopefully is, some combination of those three factors have to shift. either projected housing prices have to go up or costs have to go down. this legislation and proposed affordable include general legislation will help bring costs down. it will lower soft costs and a construction start that much earlier period to give an example, let's use tower two. it is ready to go. 299 units, completely entitled, a full set of construction documents. all it needs is a pencil, and it does not do that yet. the combined impact of the deferred fees of this legislation and the exclusionary transfer fee being proposed would bring $19 million of savings to phase two. almost all that is an interest

expense. what that translates to is $62,000 per housing unit. looking at it a different way, this means construction can start when housing prices are $62,000 less expensive per unit than what would be needed today. that is a pretty big impact. overall, this $18 million to probably expedite things about two years. let's look impacts for the city. one, jobs. there will be approximately 800 union construction jobs created. two. fees. $80 million in fees, and finally, property taxes. a new condo towers here will pay $3.2 million more than a vacant piece of land is right now. this is an annual payment, so if products are its two years earlier, we're looking at 16.4 million extra dollars. the development community, the building community would like to commend the mayor and the board for this first step, for this

legislation, and we urge them to find a way to get the second deskilling so we can start bit of -- the second piece billing so we can start building and hopefully we will have the groundbreaking back here soon. thank you. >> thanks, mark. really appreciate those facts. we have one final speaker, the developer of rincon twer and future developer of rincon tower 2. >> good morning. we are very committed to san francisco, despite the worst financial collapse that we have seen since the great depression. we have gone ahead and pay off our construction loan in full, $200 million. we have paid off of $20 million in fees to the city in phase one. we face this challenge where the economy is at and where the fees

are at and what the mayor and board and michael had done singlehandedly is remove one of those two significant obstacles, and that the invigorates our commitment here, so we hope to see you all soon -- that reinvigorate our commitment here, so we hope to see you all soon when we have a lot of guys with shovels and cranes and all sorts of exuberance as we pull out of this terrible recession. thank you very much for coming here today. thank you for all your efforts. take care. [applause] >> with that, we are actually going to sign a real legislation. it is right over here. we have two ordinances. mr. mayor, if you could just have a seat. >> [inaudible] >> [laughter]

mayor newsom: that's it. [applause] happy to answer any questions.

all right, you want the developer back to answer your question, right? >> [inaudible] mayor newsom: affordable housing fee is one of a number of pieces of legislation we introduced. that deals with the inclusion very housing responsibilities for any new developer that is developing new units, and this would provide a deferral on those by creating a new transfer fee that would be permanently placed on the property, which would generate more revenue for our affordable housing trust fund and the current inclusionary housing fee. the concern is the transition to the new system and how we can find that gap, which we are working with the board of supervisors on, notably supervisor maxwell and others that have expressed concerns. the new financing the supervisor dufty wanted will be a

significant piece of legislation to help finance those costs, up front infrastructure responsibilities and fees for new development. we think that is less controversial. i believe we have the votes, so who knows? supervisor dufty feels confident -- he can speak for himself in a moment -- about the prospects of getting at past -- getting that passed. we have again identified 9 specific projects, over 2500 housing units, already in tidal projects, talk about shovel- ready. these things to get going today. they just have a financing gap. this would decrease the ups on costs and reduce the loans and debt burden, which is the interest that would be borne on the project, push it to the back, generate the support we hope of the lenders to actually land on these projects and move them forward, generating revenue

in terms of stimulating impacts of job creation and the benefits to our local economy and ultimately, the project may permit, property tax revenue and the baseline that the project will develop -- the project made permanent. i do not know if you have a sound bite in their -- good luck. this is really innovative legislation. this is taking responsibility. we can blame sacramento, blame the fed, or we could take some accountability. i think it is innovative and responsive to the conditions. i think it is among the most significant pieces of legislation that we have passed in the last year-and-a-half since this macro economic turndown in terms of helping stimulate our local economy, and no greater stimulus than construction jobs. no greater stimulus than developing housing and improving your infrastructure, so this is

where real jobs are created, real multiplier is developed, and a real opportunity in terms of addressing the biggest challenge we have right now, and that is unemployment. they are very supportive. they have been very supportive and very patient. i think all of them are looking at not only this legislation but the melarus legislation and also affordable housing. it's certainly complements it. if we get all this past, i am confident we will have dramatically shrunk the delay in terms of time before these projects start their development, meaning rather than waiting 30 months, we could see things happening in the next six months. rather than waiting two years, we could see things happening in the next few months. that is how important this legislation package is.

i thought those numbers were pretty compelling. this is not the minimus -- de minimus. this is real money. everybody is getting paid back, but they are not ultimately having to be the upfront costs, which in this climate of liquidity and credit crunch, is incredibly important. any other questions? fabulous. thank you all. congratulations. [applause]

supervisor mirkarimi: welcome to the transportation authority meeting. i would like to say welcome to everyone here. thank you also to sfgtv.

would you please read roll call. >> [roll call] we have a quorum. item two, approval of minutes of the june 29, 2010 meeting. >> any comments seeing none, public comment is closed. without objection. please read items 3 and 4. >> cheers report.

this is an information item. the executive director's report. supervisor mirkarimi: colleagues, it has been an extra busy month at the authority, so keep your commentsd4& we have a lengthy board meeting later. tomorrow morning is the official start of the first day fund a construction contract in the presidio parkway. we are going to mark that with a short ceremony in the presidio. we are expecting the federal highway administrator and business administration housing secretary will be attending. it is a major milestone to the project and is a reminder that the project is quickly becoming a reality. it is a hectic time of year, but i hope that you can join us tomorrow at 10:00 a.m. at you need any more information, i recommend you speak to transportation staff.

we have also been busy with the licensing measure, putting it on the ballot. that will be in our topic of discussion later on as you know, this is our last meeting before the summer recess. i feel we can go into the summer recess the way that a great deal has been accomplished over the past few month we have updated our operating policies, completed the prop k strategic plan, and all of the five-year priority plans for prop k. lay the ground for another clean audit. we are moving into the next fiscal year with our house in order and as ready as we can to take on the new fiscal year. i should also that we hit the ground running earlier this year by improving emergency funding, department of public works on the ocean beachfront repair, and that we were able to successfully facilitate the $700

million allocation to the mta board's the reduction of service cuts, which the mayor and mta have now agreed with us on. that concludes my remarks. >> the executive director's report. >> good morning. my report is on your desk. let me just highlight a couple of things in the interest of time. big news, good news, the first item on the report department of transportation staff recommendations are not for the local communities program. this is a program with about $44 million available to the region. it received more than $80 million in requests. san francisco was recommended

for funding for all the projects sub. in fact, about 17% of the total amount of money available regionally, just for reference, our population share is 11%, so this is is a commitment win for san francisco. the projects recommended for funding at up to $7.4 million. that includes the 24th street bart plaza, market and haight street granted in pedestrian improvements, public plaza development, the san francisco redevelopment agency alleyway improvement project, $1.3 million.

these are big wins for the city. i am delighted to be able to announce them. i am indebted to the policy division, particularly, i want to recognize the good efforts of the senior transportation planner. he was the one leading the effort. of course, i want to also congratulate the project sponsors on this major piece of news. supervisor avalos: just a question on that. how were these proposals vetted and how was it decided that these were the ones that we would go after? was that a decision the commission made? >> yes, this was run through the plans and programs committee, where the priorities were

identified. essentially, they made a discretionary decision on these projects. these are projects that are city priorities that we have been looking for funding for a long time. supervisor avalos: obviously, there is a great need across the city with these projects. there was discussion about mtc funding being made available for balboa park. i wonder if that is still a possibility. i know there will be funds coming shortly that will be available. i want to make sure we do not lose sight of that project. >> absolutely. that is one of the highest priorities we have, but we depend on the region a process as we can. the more money we can capturebñ u. the5/míu

projects have to wait. i wanted to highlight that i 7eñg r,o with caltrans 3k),d$ñrepresentatives in washi, d.c. making presentations to the federal highway administration,oñg#@5e office oe secretaryédó;çh for long-term l. they had a pretty good reception. i am hopeful that we will hear by august. beginning to crop up as we begin y)ty96px> i also wanted to highlight, among the other items on the and programs department to gñ a9vgáñim!ñe parklet

avenue. this was informed by discussion we havedl c had with the commun, with commissioner chiu's2m'éjrq, and is the direct result of the . program will of different demonstration site. one has alreadyb4fzwkpq,- on mission street. adsnwv5columbus avenue will be presented to an implementation committee for recommendations on the 22nd of this week. hopefully, we will seexos startr pilots on going in the not too distant future with the full support of the community.

¢ádand then i also wano ,greport, fe :lr ós removal study will be having another workshop inw[>-h brisbane, co-host could with the a1, bringing ;åp city rea staff to talk about their vision for moving the bay shore intermodal station forward. ñ2jshould ÷ for more information. also wanted to quickly report that we have work unerway on yd cl.